Zylotech's ex-CEO fights to remain on Board

Nicholas Sikitois, the former CEO of Australian security surveillance developer, Zylotech, has sent CRN an exclusive document detailing his defence to shareholders, of ‘irregular transaction' to WNA Systems Pty Limited.

The document comes as the company has called a shareholders’ meeting, to be held on 2 February, to vote on the removal of Sikitois from Zylotech’s board.

Previously he claimed, to CRN, the board’s decision to dump him was a “set-up”.

In the statement, Sikiotis, claimed WNA Systems is a distributor of wireless systems and accessories, with clients throughout Australia.

He stated that his wife has a non-controlling share and is a director of the company.

“WNA provides significant tender support to Zylotech free of charge and provides significant warranty and backup,” he said.

“All of these factors support prior public statements that the services and purchases were charged at commercial rates.

“Zylotech has never incurred material expenditure with WNA – average spend has been approximately $65,000 a year – and has typically on-sold these for a significant margin.”

Sikiotis is at a loss to explain why the ‘new directors’ want him dumped from the company.

Although he wants to work with the new directors towards resolving these matters, in a way that preserves shareholder value.

“The new directors have not shown they have significant security industry experience or hold the legally required licenses to conduct Zylotech’s business,” claimed Sikiotis.

Sikiotis said he is fighting to remain on the company’s board because he was the founder and driver for Zylotech’s main business.
To back up his case, Sikitois also sent CRN a document from Harry Lu, president of China-based hardware vendor and Zylotec supplier, Neatek Technology.

Lu stated the company was “disappointed and astounded” at the “sudden” dismissal of Sikiotis from the positions of CEO and CFO of Zylotech.

“Whilst we originally thought there must be a mistake here,” he said.

“We are now even more concerned about the future after the recent announcement by the Board of Zylotech to remove Sikiotis as a director of the company.”

According to Lu, he has personally dealt with Sikiotis for the past 34 years and their business relationship was “built over these years on mutual trust, integrity and respect”.

“Our involvement has been across several companies for which he was the business founder in Australia, including, Mitac, Keller, Automation and Computer Vision (its offspring is Zylotech),” he said.

“He has the ability to personally conceptualise, create, engineer, and bring into realisation products such as; Eyelink; Hawkeye; Smartcluster; Smartstore; and Rainbow – for which we are the OEM maker or sub-assembly supplier.

“[He is] the only reason we have preserved with Zylotech, even though the production volumes have not been commercially ideal.”

Lu stated that the vendor hasn’t signed an exclusive supply agreement with Zylotech, although it has extended ‘virtual’ exclusivity to it based on the strength of its relationship with Sikioits.

Zylotech’s interim CEO, Steven Mackay wasn’t available for comment at the time of press.

However in past articles McKay told CRN that the board stands by its decision to let go of Sikiotis.

CRN will keep readers informed of any further developments.

exceo hardware mackay neatek nicholas sikiotis steven zylotech